EEE 334 MIDTERM ACTUAL EXAM PAPER
2026 QUESTIONS WITH ANSWERS
GRADED A+
◍ Debt‑to‑Equity Ratio.
Answer: Compares debt financing to equity financing.
◍ What is entrepreneurship?.
Answer: The process of creating value by bringing together a unique
combination of resources to exploit an opportunity.
◍ What is a 'window of opportunity'?.
Answer: A short period when a product/service must be launched to avoid
missing the chance.
◍ Outstanding Shares.
Answer: Shares issued and held by owners.
◍ Cash Flow to Debt Ratio.
Answer: Ability to pay long‑term debt with operating cash.
◍ What happens during Evaluation?.
Answer: Assessing viability, novelty, and feasibility.
◍ Gross Margin.
Answer: Gross Profit / Revenue.
◍ Total Asset Turnover.
Answer: Sales generated per dollar of assets.
◍ Days Sales Outstanding (DSO).
Answer: Average days to collect receivables.
◍ Current Ratio.
, Answer: Compares current assets to current liabilities.
◍ Inventory Turnover.
Answer: How many times inventory is sold and replaced.
◍ What is carrying capacity?.
Answer: The degree of growth an industry can sustain.
◍ Pitching Framework.
Answer: Problem → Solution → Market → Business Model → Traction →
Team → Ask.
◍ What is a fixed cost?.
Answer: A cost that does not vary with sales (rent, salaries, insurance).
◍ Times Interest Earned (Interest Coverage).
Answer: Measures ability to pay interest from operating income.
◍ What are the common causes of entrepreneurial failure?.
Answer: Managerial incompetence, poor financial control, failure to plan,
inappropriate location, inventory issues, inability to transition to an
entrepreneurial mindset.
◍ Current Ratio.
Answer: Measures ability to pay short-term obligations.
◍ What does 'process' mean in entrepreneurship?.
Answer: Entrepreneurship unfolds over time, can be broken into stages,
managed, and learned.
◍ Five Competitive Forces.
Answer: Threat of New Entrants; Bargaining Power of Suppliers;
Bargaining Power of Buyers; Threat of Substitutes; Rivalry Among Existing
Competitors.
◍ Window of Opportunity.
Answer: A short period during which an opportunity must be acted upon or
missed.
, ◍ Sources of Opportunity Recognition.
Answer: Trends, problems, and gaps in the marketplace.
◍ What is the economic model of a business?.
Answer: How the business makes money (volumes, margins, O/L, revenue
drivers).
◍ Balance Sheet.
Answer: A snapshot of assets, liabilities, and equity at a point in time.
◍ What is 'incubation'?.
Answer: Subconscious 'simmering' where ideas churn below awareness.
◍ Return on Equity (ROE).
Answer: Measures return generated on shareholders' investment.
◍ What is Guerrilla Marketing?.
Answer: An unconventional, non-traditional, creative, low-cost marketing
strategy that focuses on imagination and relationships.
◍ What are the four terminals of a MOSFET?.
Answer: Gate, source, drain and body
◍ What does the gate do?.
Answer: Controls electron carrier concentration in channel
◍ Break-Even Point.
Answer: BEP (units) = Fixed Costs / (Price − Variable Cost).
◍ What is the gate width?.
Answer: Width of the channel
◍ What are the three financial statements?.
Answer: Income Statement, Balance Sheet, Cash Flow Statement.
◍ Opportunity.
Answer: A favorable set of circumstances creating a need for a new
product/service.
◍ What is a variable cost?.
2026 QUESTIONS WITH ANSWERS
GRADED A+
◍ Debt‑to‑Equity Ratio.
Answer: Compares debt financing to equity financing.
◍ What is entrepreneurship?.
Answer: The process of creating value by bringing together a unique
combination of resources to exploit an opportunity.
◍ What is a 'window of opportunity'?.
Answer: A short period when a product/service must be launched to avoid
missing the chance.
◍ Outstanding Shares.
Answer: Shares issued and held by owners.
◍ Cash Flow to Debt Ratio.
Answer: Ability to pay long‑term debt with operating cash.
◍ What happens during Evaluation?.
Answer: Assessing viability, novelty, and feasibility.
◍ Gross Margin.
Answer: Gross Profit / Revenue.
◍ Total Asset Turnover.
Answer: Sales generated per dollar of assets.
◍ Days Sales Outstanding (DSO).
Answer: Average days to collect receivables.
◍ Current Ratio.
, Answer: Compares current assets to current liabilities.
◍ Inventory Turnover.
Answer: How many times inventory is sold and replaced.
◍ What is carrying capacity?.
Answer: The degree of growth an industry can sustain.
◍ Pitching Framework.
Answer: Problem → Solution → Market → Business Model → Traction →
Team → Ask.
◍ What is a fixed cost?.
Answer: A cost that does not vary with sales (rent, salaries, insurance).
◍ Times Interest Earned (Interest Coverage).
Answer: Measures ability to pay interest from operating income.
◍ What are the common causes of entrepreneurial failure?.
Answer: Managerial incompetence, poor financial control, failure to plan,
inappropriate location, inventory issues, inability to transition to an
entrepreneurial mindset.
◍ Current Ratio.
Answer: Measures ability to pay short-term obligations.
◍ What does 'process' mean in entrepreneurship?.
Answer: Entrepreneurship unfolds over time, can be broken into stages,
managed, and learned.
◍ Five Competitive Forces.
Answer: Threat of New Entrants; Bargaining Power of Suppliers;
Bargaining Power of Buyers; Threat of Substitutes; Rivalry Among Existing
Competitors.
◍ Window of Opportunity.
Answer: A short period during which an opportunity must be acted upon or
missed.
, ◍ Sources of Opportunity Recognition.
Answer: Trends, problems, and gaps in the marketplace.
◍ What is the economic model of a business?.
Answer: How the business makes money (volumes, margins, O/L, revenue
drivers).
◍ Balance Sheet.
Answer: A snapshot of assets, liabilities, and equity at a point in time.
◍ What is 'incubation'?.
Answer: Subconscious 'simmering' where ideas churn below awareness.
◍ Return on Equity (ROE).
Answer: Measures return generated on shareholders' investment.
◍ What is Guerrilla Marketing?.
Answer: An unconventional, non-traditional, creative, low-cost marketing
strategy that focuses on imagination and relationships.
◍ What are the four terminals of a MOSFET?.
Answer: Gate, source, drain and body
◍ What does the gate do?.
Answer: Controls electron carrier concentration in channel
◍ Break-Even Point.
Answer: BEP (units) = Fixed Costs / (Price − Variable Cost).
◍ What is the gate width?.
Answer: Width of the channel
◍ What are the three financial statements?.
Answer: Income Statement, Balance Sheet, Cash Flow Statement.
◍ Opportunity.
Answer: A favorable set of circumstances creating a need for a new
product/service.
◍ What is a variable cost?.
